If Congress needs motivation to pass legislation to lift the ban
on oil drilling off the Atlantic and Gulf coasts and in the Arctic
National Wildlife Refuge, it should look no further than news Monday
that BP was shutting down production in an Alaskan oilfield that
supplies about 8 percent of domestically produced crude oil.
The response on the commodities market was a 3 percent rise in
crude oil prices to just less than $77 a barrel. The news also
prompted experts to predict gasoline prices could rise by as much as
10 cents a gallon because of the indefinite shutdown. BP said the
shutdown, required because of corrosion within a pipeline that takes
oil from the nation's largest oilfield to the main Alaskan pipeline,
would reduce the U.S. oil supply by about 400,000 barrels a day.
By contrast, the Energy Information Administration estimates ANWR
would produce 1 million barrels per day at its peak. Estimates vary
on how much oil could be taken from Atlantic and Gulf coastal
waters. A main argument against drilling in ANWR and, now, lifting
the coastal drilling ban, has been that there's not enough oil in
those areas to significantly impact prices. This week's news
suggests otherwise and makes a convincing case for expanding
domestic oil production to hedge against major disruptions.
There's no disputing this nation needs to develop alternative
fuels. They are the only way to ultimately wean the United States
from its dependence on oil in general and foreign oil in particular.
But those solutions are long-term, and until they are developed and
widely accepted, the United States is too susceptible to the
uncertainties of the oil market.
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The shorter-term solution is to unlock the important stores of
petroleum off the U.S. coasts and beneath the Alaskan wilderness.
The Prudhoe Bay disruption, coupled with uncertainties over global
supplies, shows just how vulnerable oil and gas prices are to supply
disruptions of a magnitude that could easily be offset by production
in ANWR and off the Atlantic and Gulf coasts.
Congress has the opportunity to stabilize the situation. The
House and Senate recently passed two vastly different bills that
would expand drilling opportunities. The House version would allow
drilling at least 50 miles off the coasts of the Atlantic Ocean and
the Gulf of Mexico (states would have the option to expand the limit
to 100 miles). That, along with opening ANWR, is sensible.
As Congress reconciles those two bills, it should mark the
portentous Prudhoe Bay shutdown: This nation is susceptible to
supply disruptions, and the oil off our coasts and beneath ANWR can
be an effective shield against them. |